Gold Horizons Mining is pleased to announce through negotiations with
the property adjacent to its processing plant that permission has been
granted to connect its electrical grid establishing a corridor on their
property. The significance here is that the costly electrical extension
distance from the previous two kilometers from the Pan American Highway
to the facility is greatly reduced resulting in Gold Horizons Mining’s
energy supply cost being paired down to the minimum.

There were many options available to connect to the grid but none
more strategic or economical. The most obvious advantage is the
electrical infrastructure on the property is already in place. This
allows the Company to piggyback on the already existing grid simplifying
the installation. Secondly, the distance between the plant and the grid
is mostly a direct, straight line further reducing installation cost.
Thirdly and perhaps most importantly is the relationship now being
cemented between GHM and its neighbor. This neighbor has deep roots in
the community and is held in high esteem. His voice and opinion carries
weight and influence in local politics. Being a good neighbor and having
the support of the community on a grassroots level is key to being
accepted and ultimately successful.

Energy is one of the largest costs confronting the mining industry.
The cost of producing one ounce of gold is greatly affected by the cost
of energy. Processing plants are energy intensive and are operated
non-stop twenty-four hours a day. Many of the processing plants that we
will be competing with operate in areas where there is no electrical
grid available. Their only option is to run diesel generators to produce
their electricity. This gives GHM a distinctive competive advantage:
our overhead is a fraction of the cost because the plant will be
connected to 3-phase 380 volts industrial electricity. Furthermore, many
of the surrounding mines have to ship their mineral hundreds of
kilometers to these processing plants. Our goal is to produce an ounce
of gold below $600. The combination of our processing plant being within
20 kilometers of the mine, within 5 kilometers of the Pan American
Highway and connected to the electrical grid will support us in meeting
this $600 cost benchmark.